Ramos, Seechua and Tria are partners in a textile distribution business, sharing profits and losses equally. On Dec. 31, 2018, the partnership capital and the partners' drawing were as follows: Ramos Seechua Tria Total Capital Drawing P100,000 60,000 P80,000 40,000 P300,000 P480,000 120,000 20,000 The partnership was unable to collect on its trade receivables, and it was forced to liquidate. The operating profits for 2018 amounted to P72,000, and was all exhausted including the partnership assets. Unsettled creditors' claim at Dec. 31, 2019 amounted to P84,000. Seechua and Tria have substantial private resources, but Ramos has no available free assets. The final cash distribution to Tria was: a. P162,000 b. P108,000 c. P 84,000 d. P 78,000 С.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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